Potential cost implications of contracting risks – the views of bus operators in South Africa

Jackie Walters

Research in Transportation Economics, 2018, vol. 69, issue C, 235-244

Abstract: In South Africa, like many countries internationally, public transport contracting costs are continuously being scrutinised in the light of tight economic circumstances. In designing public transport contracts it is important that an appropriate risk-share dispensation be considered to ensure that the relevant entity (the authority and/or operator) carries the risk that it is best suited to manage. Inappropriate risk-sharing arrangements can result in additional costs being factored into contract bids by operators thus increasing the overall cost of public transport for the authority. In addition, the design of the contract e.g. net cost versus gross cost (and associated risk apportionment) could have a bearing on the ultimate cost of the contract.

Keywords: Public transport contracting; Public transport contract risks; Operator risk views; Risks in public transport contracts (search for similar items in EconPapers)
JEL-codes: M10 M11 M21 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:retrec:v:69:y:2018:i:c:p:235-244

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DOI: 10.1016/j.retrec.2018.03.009

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